United Bank Limited · PSX:UBL
United Bank — IPO Roadshow (2008)
19 slides from United Bank's IPO roadshow presentation, 2008
Slide 1: United Bank Limited
United Bank Limited HK000MSI_Roadshow
Slide 2: Investment Highlights
Investment Highlights 1 2 Attractive Sector Broad and Unique Fundamentals Distribution Network Support Growth 6 3 High Calibre and Leading Consumer Experienced Finance Franchise Management Team 5 4 Strong Revenue Strong Asset Quality Diversification Position Drivers 2
Slide 3: Attractive Sector Fundamentals Support Growth
1 Attractive Sector Fundamentals Support Growth Macroeconomic Highlights Industry Growth ● Robust GDP growth and increasing income levels Assets (PKR bn) Loans (PKR bn) Deposits (PKR bn) ● Strong regulatory framework, focus on asset quality R: 18 % R: 15 % R: 15 % CA G CA G CA G ● Low consumer loan
Slide 4: Broad and Unique Distribution Network
2 Broad and Unique Distribution Network Most Internationally Focused Bank in Pakistan Domestic and International Reach Branch Network Upgrade Domestic Branches 1,078 Business Process Reengineering NWFP Azad Kashmir 153 71 ● Transform branches from deposit focus Peshawar Islamabad to sales and custom
Slide 5: Leading Consumer Finance Franchise
3 Leading Consumer Finance Franchise First Among the Big 5 Domestic Banks to Launch Consumer Banking Consumer Loans - Products yield – Credit Card Market Share (Jun’07) (Dec’07) Key Highlights 25% 21% ● Over 200,000 credit cards issued ● Introduced first ever Smart Chip credit card 17% 16% 13% ● Fir
Slide 6: Strong Revenue Diversification Drivers
4 Strong Revenue Diversification Drivers Implementing Universal Banking Model Non Interest Income (PKR mm) Expansion into Non-Banking Revenue Investment Banking : 27% ● Biggest investment bank in Pakistan 7 C AGR 9,931 – 200 ● First authorized derivative dealer in 2004 the country 7,262 UBL Fund Man
Slide 7: Strong Revenue Diversification Drivers: Recognized Expertise in Investment Banking
4 Strong Revenue Diversification Drivers Recognized Expertise in Investment Banking #1 Largest Investment Bank (FY2003- (FY2003-FY2005) #1 Key Highlights Transaction Volume (PKR mm) ● Offers the full spectrum of services; most specialized domestic player with dedicated desks for 156,462 DCM/Syndicat
Slide 8: Strong Revenue Diversification Drivers: International Capabilities
4 Strong Revenue Diversification Drivers International Capabilities and Core Competency Deposits Advances Profit (PBT) 18% 21% 24% 24% 80 17% 20% 70 64 22% 3.5 3.3 25% 71 64 20% 64 16% 56 18% 17% 13% 15% 2.8 20% 13% 14% 2.5 12% 48 12% 42 39 13% 39 2.1 1.9 15% Rs B Rs B 30 26 32 8% 28 9% 1.2 21 1.4 1
Slide 9: Asset Quality Position
5 Asset Quality Position Improving Asset Quality Dynamics, Better than Industry Average Position Low Gross NPL Ratio High Coverage Ratio Adequate Capitalization 85% 83% 12.5% 79% 78% 78% 77% 11.6% 75% 70% 12.2% 12.4% 12.1% 8.9% 8.8% 10.7% 7.9% 7.7% 8.3% 7.7% 6.9% 7.1% 6.9% 6.2% 2004 2005 2006 2007 2
Slide 10: Deposit Structure
Deposit Structure Deposit Mix Fixed Deposits (1) Other Deposits Contribution 2% Fixed Deposits 80 Cost 0.4% Contribution 32% 72 Current Deposits Cost 7.4% Contribution 28% 59 Cost 0.0% 47 44 28 26 13 Savings Deposits 6 Contribution 38% Cost 2.8% 0 Total Deposits = PKR 412 bn Cost of Deposits = 3.6%
Slide 11: High Calibre and Experienced Management Team
6 High Calibre and Experienced Management Team Management Team Has Delivered Outstanding Results Core Management Team Sustained Profitability Years of Global Bank Bank Name Position Experience Experience 2.44% 2.45% 1.93% 1.51% Atif R. Bokhari President & Chief Bank of America 23 Executive Officer 3
Slide 12: Financial Highlights
Financial Highlights HK000MSI_Roadshow
Slide 13: Superior Balance Sheet Growth
Superior Balance Sheet Growth Assets (PKR bn) Gross Loans (PKR bn) Deposits (PKR bn) Top 4 Top 4 Top 4 Average Average Average CAGR: 14% CAGR: 15% CAGR: 11% 5% 6% 326 % R:2 547 R:2 R: 20 412 G G G CA CA 7 CA 2 007 2 007 200 4– 4– 4 – 200 436 200 268 200 344 225 296 358 237 282 164 2004 2005 2006 200
Slide 14: High Margins
High Margins Interest Income (PKR bn) Loan Yield and Net Interest Margin % G R: 63 o me CA t Inc 7) l Interes 04 – 200 Tot a (2 0 9% R: 6 m e CAG 11.0% 11.1% nc o t er est I – 2007) 42.0 In 4 Loa n (200 33.6 7.9% 6.5% 6.0% 5.5% 5.3% 20.7 3.6% 31.3 9.7 25.7 15.5 6.5 2004 2005 2006 2007 2004 2005 2006
Slide 15: Strong Fee Income Growth and Contribution
Strong Fee Income Growth and Contribution Net Interest Income Growth Total Revenue(1) (PKR bn) 85% 40% 0 7 C AGR: – 20 47% 2004 34.7 16% 7% 28.6 2004 2005 2006 2007 19.9 Non Interest Income Growth 12.7 35% 37% 11% -3% 2004 2005 2006 2007 2004 2005 2006 2007 Source: Company reports (1) Defined as net
Slide 16: Sustained Profitability
Sustained Profitability Earnings Trend Profitability Ratios Net Profit (PKR mm) ROAE(1) 33.7% 4% 28.3% GR: 3 25.0% – 20 07 C A 23.8% 22.8% 2004 20.3% 21.2% 20.6% 9,667 9,237 2004 2005 2006 2007 6,168 ROAA 2.4% 2.1% 2.0% 1.9% 3,821 1.8% 1.9% 1.5% 1.2% 2004 2005 2006 2007 2004 2005 2006 2007 * 2007 re
Slide 17: Appendix
Appendix HK000MSI_Roadshow
Slide 18: Income Statement
Income Statement 2004 2005 2006 2007 ’04-’07 CAGR (PKR mm) Net Interest Income (1) 7,860 14,531 21,367 24,799 47% Non Interest Income 4,818 5,372 7,262 9,930 27% Operating Revenue (1) 12,679 19,903 28,629 34,729 40% Operating Expense 7,346 8,727 12,328 14,734 26% Pre-Provision Operating Profit 5,332
Slide 19: Balance Sheet
Balance Sheet (PKR mm) 2004 2005 2006 2007 ’04-’07 CAGR Cash and Bank Balances 48,119 52,832 68,442 68,605 13% Investments – Net 52,708 61,559 65,735 114,026 29% Loans and Advances – Net 148,225 210,153 254,670 308,271 28% Total Assets 282,248 358,056 435,835 546,796 25% Customer Deposits 237,054 29